Mkango Resources Limited (LON:MKA) (TSX:MKA) is well-positioned to progress the feasibility and development phases of its Songwe Hill rare-earths prospect in Malawi, according to a management discussion and analysis report for the year ended December 31, published on its website Friday.
Following recent investments by Noble Group subsidiary Talaxis, the exploration and development company said the initial phases of the feasibility study include a diamond drilling programme and the publication of an updated mineral resource estimate.
READ: Mkango Resources subsidiaries receive investments totalling £6mln (C$10.5mln) from Talaxis
The group is also undertaking metallurgical optimisation and work on the ongoing environmental, social and health impact assessment of the project.
At the end of January, Talaxis invested an initial £5mln into Lancaster Exploration Limited - the subsidiary which holds the licence for Songwe Hill - in return for a 20% interest in the business.
Talaxis also invested £1mln into a new Mkango subsidiary, Maginito Limited, in return for a 24.5% interest in Maginito.
A further £8mln will be invested by Talaxis into Lancaster and Maginito subject to a definitive joint venture agreement and the publication of the updated mineral resource estimate.
Mkango is aiming to develop the Songwe Hill project, along with complementary downstream opportunities in the rare earths supply chain, through Maginito, both of which are in partnership with Talaxis